Free Republic

According to Mark Zandi, Chief Economist for Moody’s, the economy will accelerate to 3% or more after Bernanke steps down as Federal Reserve Board Chairman. Not because Bernanke is stepping down. Rather, Zandi thinks that the economy has achieved “escape velocity.” Federal Reserve Chairman Ben S. Bernanke will leave behind an economy poised to record its biggest advance in almost a decade when he makes his anticipated departure from the central bank early next year. Growth will accelerate to 3 percent or more in 2014 after averaging an annualized 2.1 percent during the first four years of the recovery, according...

The title of the WSJ’s Nick Timiraos article couldn’t be more ironic: “Economist Eyed for Fannie Watchdog.” It is ironic in a couple of ways. First, Zandi has no regulatory experience (as far as I know). Second, he is on record touting every government loan modification and principal reduction program. See, for example, his New York Times editorial with Joseph Stiglitz. The current FHFA Acting Director, Edward DeMarco, has been a champion of shrinking Fannie Mae and Freddie Mac’s footprint in the market and consolidating their operations. According to Timiraos: Without clear direction from the White House or Congress, Mr....